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S&P 500 Inches Higher amid Strength in Energy Stocks
22-Apr-19 16:20 ET
Dow -48.49 at 26511.05, Nasdaq +17.20 at 8015.25, S&P +2.94 at 2907.97

https://www.briefing.com/investor/markets/stock-market-update/2019/4/22/s-and-p-500-inches-higher-amid-strength-in-energy-stocks.htm

[BRIEFING.COM] The S&P 500 increased 0.1% on Monday, supported by strength in energy stocks amid a noticeable increase in oil prices ($65.65, +1.62, +2.5%). Trading volume was lighter than usual after the three-day holiday weekend (most of Europe remained closed for Easter Monday), which contributed to another tight-ranged session. The S&P 500 closed above the 2900 level and 1.1% from its all-time high.

The Nasdaq Composite increased 0.2%. The Dow Jones Industrial Average lost 0.2%, and the Russell 2000 lost 0.4%.

Oil prices rose after the U.S. decided to end its waivers for countries to import oil from Iran. The waivers will expire May 2, and the decision caused some concern about oil supply despite the move not being entirely surprising. WTI crude settled above $65 per barrel, hitting its highest level since Oct. 31, underpinning the outperformance of the S&P 500 energy sector (+2.1%).

The big move in the energy sector also helped offset losses from the S&P 500 real estate (-1.1%), materials (-0.7%), and industrial (-0.3%) sectors.

Kimberly-Clark (KMB 130.25, +6.70, +5.4%) and Halliburton (HAL 31.09, -0.04, -0.1%) were some of the more notable companies to report earnings on Monday. Shares of Kimberly-Clark climbed 5.4% after the company beat top and bottom-line estimates. Halliburton beat revenue estimates, but the stock was unable to rise alongside the broader energy space.

In other corporate news, Boeing (BA 375.17, -4.90, -1.3%) and Tesla (TSLA 262.75, -10.51, -3.9%) were subject to some negative attention on Monday.

The New York Times suggested Boeing's South Carolina factory, which produces its 787 Dreamliner, fostered a culture that valued "production speed over quality." Separately, a Chinese surveillance video depicted a parked Tesla vehicle appearing to catch fire and explode. TSLA was also downgraded to downgraded to Underperform from In-line at Evercore ISI.

U.S. Treasuries finished slightly lower in an equally tight-ranged session that included some yield-curve steepening. The 2-yr yield increased one basis point to 2.39%, and the 10-yr yield increased three basis points to 2.59%. The U.S. Dollar Index lost 0.2% to 97.29.

Reviewing Monday's economic data, which included Existing Home Sales for March:

Existing home sales decreased 4.9% month-over-month in March to a seasonally-adjusted annual rate of 5.21 million (Briefing.com consensus 5.37 million) from a downwardly revised 5.48 million (from 5.51 million) in February. Total sales were 5.4 % lower than the same period a year ago.
The key takeaway from the report is that rising prices, and a lack of homes at more affordable price points, continue to keep overall sales activity in check.

Looking ahead, investors will receive New Homes Sales for March and the FHFA Housing Price Index for February on Tuesday.

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